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Releasing economic growth in Ireland and the EU: The impact of Non-Performing Loans. Resolving the issue

Carpenter, Seán (2019) Releasing economic growth in Ireland and the EU: The impact of Non-Performing Loans. Resolving the issue. Masters thesis, Dublin, National College of Ireland.

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Abstract

This paper seeks to examine and evaluate the strategies employed by the Irish banking system to clean up bank balance sheets by reducing persistently high and problematic Non-Performing Loan ratios. The input and influence of EU policy makers is also considered and discussed.

The purpose of this research is to address an existing research gap regarding the impact of high Non-Performing Loan ratios across Europe in the wake of the global financial crisis of 2008. Most specifically, the researcher seeks to examine and explain the Non-Performing Loan predicament from Ireland’s perspective, and evaluate the major Non-Performing Loan rectification efforts which have been employed.

The existing and relatable literature is predominantly descriptive and cross-sectional. There is a dearth of qualitative studies on matters regarding problematic Non-Performing Loan ratios in Ireland and across Europe. The researcher has adopted a qualitative research approach. A purposive sample of senior-ranking professionals from private and public institutions within the banking, and financial services industries were interviewed. Their knowledge and experience of the subject matter was crucial to adding value and credence to the research.

The banking system needs to build its resilience in advance of another potential economic shock. Counter-cyclical reforms have been implemented across the EU and internationally. Most significantly, provisioning requirements for banks have been extensively revised and intensified.

Non-Performing Loans are a source of vulnerability to a banking system. It is incumbent upon banks to deleverage by clearing large volumes of Non-Performing Loans from their balance sheets. Secondary market portfolio sales have emerged as the primary approach adopted by Irish banks. The researcher predominantly aims to understand the resolution approaches adopted in Ireland and evaluate their effectiveness.

Item Type: Thesis (Masters)
Subjects: H Social Sciences > HG Finance > Banking
H Social Sciences > HG Finance > Financial Services
Divisions: School of Business > Master of Business Administration
Depositing User: CAOIMHE NI MHAICIN
Date Deposited: 17 Oct 2019 10:49
Last Modified: 17 Oct 2019 10:49
URI: http://trap.ncirl.ie/id/eprint/3957

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